Steinhoff raises R4.8bn in share sale

Steinhoff [JSE:SNH] managed to raise R4.8bn by placing over 600 million of its shares in KAP Industrial Holdings on offer.

The retailer on Tuesday placed the 694 206 661 shares on offer, with the goal to raise funding to help fulfill its debt obligations and to ensure its business platforms are "appropriately funded".

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According to a shareholder notice issued on Wednesday morning, the group said each of the shares went for R6.85.

The offering was oversubscribed. This means that Steinhoff has effectively sold off its 26% stake in KAP. Any KAP board members nominated by Steinhoff will resign if its stake is reduced, the group said in a previous notice.

• READ: Steinhoff to sell off stake in KAP to pay debt

The settlement of the process will take place on April 1, 2019.

Steinhoff's share price, which opened at R1.78 was trading 5.14% higher at R1.84 by 09:15.